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SITUATION 5: Managing Constraints CEG has a machine it uses on both the wakeboard and kneeboard production. Monthly demand for each product is 400 and
SITUATION 5: Managing Constraints CEG has a machine it uses on both the wakeboard and kneeboard production. Monthly demand for each product is 400 and 150 units, respectively. Which product should CEG focus its efforts on first? Machine can operate 12000 minutes per month. Kneeboards 400 250 Sales Price per Unit Variable Cost per Unit Contribution Margin Fixed Costs Net Operating Income its en els 500 $ 320 $ 180 $ 80 $ 100 $ 150 90 60 Machine minutes needed 30 20
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